Fleet News

Northgate look to London for 2014 expansion

Fleet news logo

Northgate Vehicle Hire is set to expand heavily in London next year.

The company’s expansion within the London area has already commenced, with the opening of two new sites in the final quarter of 2013’s financial year, and the launch of six to eight new depots is planned over the next 12 months.

The new openings in Luton and Brent Cross, coupled with those planned to launch over the next 12 months, form the initial stages of a wider UK based branch expansion plan which will add up to 20 new depots to the company’s existing network over the next four years. 

New sites will take three years to reach maturity and, at this point, will operate a fleet of approximately 500 vehicles per site. Financially, new sites are estimated to break even in their first year with overall return on capital employed exceeding current levels.

Northgate is hoping its new London sites experience the growth rate of its Irish operation, currently 20% per annum.

Bob Contreras, CEO of Northgate Vehicle Hire, said: “Over the last six months we’ve launched new depots in Luton, Brent Cross and Huddersfield, and all to great effect. Our focus will now shift to the London market due to the demand for flexible hire in the capital. Each new site will have an initial set up cost of £200,000, covering property, personnel and marketing costs. If the new sites perform in line with our expectations, they should break even in year one and by year three have a ROCE in excess of 16%.


Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee